By Michael Watson
Using strategic offer chain community layout, businesses can in attaining dramatic mark downs from their provide chains. Now, specialists at IBM and Northwestern collage have introduced jointly either the rigorous rules and the sensible purposes you must grasp. You’ll how you can use provide chain community layout to choose the fitting quantity, position, territory, and dimension of warehouses, crops, and construction strains; and optimize the move of all items via your provide chain whether extends around the world. The authors current greater how you can come to a decision what to fabricate internally, the place to make those items, which items to outsource, and which providers to take advantage of. They consultant you in additional successfully handling tradeoffs similar to expense vs. carrier point, enhancing operational decision-making by means of integrating analytics all through offer chain administration; and re-optimizing usually for even higher discount rates. Supply Chain community layout combines top practices, the newest equipment in optimization and analytics, and state of the art case experiences: every thing you want to maximize the price of provide chain community layout. For all offer chain executives, managers, strategists, and analysts; and for all scholars, teachers, and researchers in complicated offer chain administration and/or logistics courses.
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Extra info for Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain
Example text
As mentioned previously, the more you make of a given product at a single location, the lower the production cost per unit. This is driven by a reduction in production line setup time and costs and the benefit of being able to create a more focused manufacturing process. So while it may be ideal to have many production locations to minimize transportation cost, economies of scale in manufacturing suggest that fewer plants will be better. • Taxes—In a global supply chain, it is often important to consider the tax implications of producing and distributing product from multiple or different locations.
Other third-party firms, termed co-manufacturers, co-packers, or toll manufacturers, are used to simply supplement the capacity of the firm itself. These are quite common with consumer packaged goods like food and beverages or chemical companies. As with warehouses, in practice, you will find many variations in terminology for plants and different types of manufacturing sites and suppliers serving roles similar to those mentioned previously. Solving the Quantitative Aspects of the Problem Using Optimization Because of the supply chain complexities and rich set of quantitative data we have discussed, mathematical optimization technology is the best way to sort through the various options, balance the trade-offs, determine the best locations for facilities, and support better decision making.
We will cover what this means in more detail later in the book, and will also provide information on how these problems work. There are whole courses on MIP however, so we will cover the topic only as it relates to supply chain network design problems in this text. One way to think about a MIP is to think of it as a series of steps that are influenced by the objective, the constraints, and the decision variables. That is, during the steps, the objective steers the solution to more favorable costs and avoids less favorable costs, the constraints set the rules and can prevent it from doing more of what it wants or can force it to do something that is not favorable to the objective, and the decision variables tell it what it is allowed to change.